Real Estate Terms-Practice Of Real Estate And Disclosures

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abandonment

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A unilateral termination of a tenancy by forfeiture, delivered by the landlord based on notices from the landlord.

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advertising

Back 2

Communications of marketing materials by licensees, such as property fliers, classified ads or first-contact brochures.

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Americans with Disability Act (ADA)

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Federal regulations prohibiting an employer from discriminating against a qualified person based on a disability.

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anti-trust

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State and federal regulations that are designed to promote fair competition in the marketplace.

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blockbusting

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The prohibited practice of a real estate licensee inducing a property owner to list their property for sale is response to a change taking place in the neighborhood demographics.

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bulk sale

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The transfer of more than one-half the inventory of a business' materials or goods to a person other than the business' customers.

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California Bureau of Real Estate (CalBRE)

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A government agency which oversees, regulates, administers and enforces California real estate law as practiced by licensees.

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certificate of clearance

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A document certifying a property has been cleared of all infestations and all repairs necessary to prevent infestations have been completed.

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commingling

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The mixing of personal funds with client or third party funds held in trust.

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commission

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common area

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An entire common interest subdivision except the separate interests therein.

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comparative market analysis (CMA)

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A worksheet used by an agent to prepare an estimate of a property's value for review with a property owner for the purpose of a listing presentation. The analysis represents the value of property for sale based on prices recently paid for similar properties.

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disclosure

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A fact that is made known, such as informing a buyer or tenant about a property's condition.

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due diligence

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The concerted and continuing efforts of an agent employed to meet the objectives of their client, the agent's promise given in exchange for the client's promise to pay a fee.

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environmental hazard

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Noxious or annoying man-made conditions which are injurious to health or interfere with an individual's sensitivities.

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estoppel

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A legal theory barring a person from later asserting or denying a condition based on the person's previous acts or statements.

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ethics

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That branch of fiduciary science, idealism, justness, and fairness, which treats of the duties which a member of a profession or craft owes to the public, client or partner, and to professionally brethren or members. Accepted standards of right and wrong, fiduciary conduct, behavior or duty.

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Fair Housing laws

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A collection of laws designed to prevent discrimination in the access to housing based on an occupant's inclusion in a protected class. Title VIII of the 1968 Civil Rights Act.

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franchise

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A license granted by a franchise company to an individual or corporate broker to market their services in a specific territory under the name and oversight of the franchise company.

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grace period

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The time period following the due date for a payment during which payment received by the lender or landlord is not delinquent and a late charge is not due.

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habitable condition

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The minimum acceptable level of safety, utility and sanitation permitted in a residential rental.

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independent contractor

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A salesperson employed by a broker under an employment arrangement which avoids income tax withholding and unemployment benefit payments by the broker.

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interpleader

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A court proceeding initiated by the holder of money or other property, often an escrow company, who claims no proprietary interest in it, for the purpose of deciding who among claimants is legally entitled to the property.

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leverage

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The use of debt financing to acquire property to maximize the return on cash invested, the loan-to-value ratio.

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license

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The personal right held by an individual to the nonexclusive use of property owned by another person.

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license requirements

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material fact

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A fact that, if known, might cause a prudent buyer or seller of real estate to make a different decision regarding what price to offer or demand for a property or whether to remain in a contract or cancel it.

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Natural Hazard Disclosure Statement (NHD)

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A report provided by a local agency or NHD vendor and used by sellers and seller's agents to disclose natural hazards which exist on all properties held our for sale.

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nuisance

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An activity which is injurious to health, offensive to the senses, or obstructs the use and enjoyment of surrounding property.

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periodic tenancy

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A leasehold interest which continues automatically for successive rental periods each for the same length of time, terminating upon notice from either party.

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property management

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A service offered by a licensed real estate broker in their real estate business involving the marketing, operation, maintenance and day-to-day accounting for rental properties.

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puffing

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An exaggeration of a property feature or benefit which, if reasonably believed to be fact, can rise to misrepresentation and fraud.

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quiet enjoyment

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Right of an owner or tenant to the use of the property without interference of possession.

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ready, willing and able buyer

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One who is prepared to enter into a purchase agreement, wants to buy, and meets the financing requirements for purchase.

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real estate law

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A collection of 29 codes in California civil law governing real estate practice licensed under the Business and Professions Code and in the Government Code.

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red flag

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A visually observable material defect in a property that was previously unknown and not disclosed to the buyer.

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redlining

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Failure to provide financing or insurance in certain communities based on the demographics of that community.

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right of first refusal

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A pre-emptive right held by another person to buy a property if the owner decides to sell.

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security deposit

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A source of funds to pay tenant obligations owed the landlord on the tenant's default in the rental or lease agreement.

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Statute of Limitations

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A period of time establishing the deadline for filing a lawsuit to resolve a dispute.

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steering

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An unlawful housing practice that includes words or actions by a real estate sales licensee intended to influence the choice of a prospective buyer or tenant. A violation of federal fair housing provisions that seek to eliminate discrimination in the sale or rental of housing.

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sublease

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A leasehold interest subject to the terms of a master lease.

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surrender

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A mutual cancellation of a lease agreement by the landlord and the tenant, written or by their conduct, when the tenant vacates the leased premises.

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trade fixtures

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Fixtures used to render services or make products for the trade or business of a tenant.

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Transfer Disclosure Statement (TDS)

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A mandatory disclosure prepared by the seller and given to prospective buyers setting forth any property defects known or suspected to exist by the seller, generically called a condition of property disclosure.

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trust account

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An account separate and apart and physically segregated from a broker's own funds, into which the broker is required by law to deposit all funds received for clients.

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trust funds

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Items which have or evidence monetary value held by a broker for a client when acting in a real estate transaction.

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unlawful detainer

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The act of retaining possession of property without legal right. A holdover tenant and a tenancy at sufferance, the rental or lease term having expired or been terminated and the tenant remains in possession without the landlords consent.

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unlicensed activities

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Activities performed by unlicensed assistants, such as clerical work which does not relate to the communication of information such as price and terms of a sale with potential buyers and sellers.